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Friday, March 20, 2009

50 Properties in 10 Years?

Alright so by now everyone knows about this recession and how it is going to last for a minimum of one year.

Everyone is talking about cutting back, not spending and playing it safe. Most people are withdrawing from the stock markets and holding cash. But is this the smart thing to do right now?

Recall that in the past recessions there have been individuals that have gone on a spending spree.....why? BECAUSE ASSETS ARE ON SALE. And what puts more money in your pocket...even more than hookers to a Pimp? One thing and one thing only....ASSETS.

Wealthy people rely on assets to pay them...regardless of weather it is real estate, a business, stocks, or a new product you are putting out.

If you go through life acquiring liabilites IE) things that take money out of your pocket like cars, clothes and all that other crap....then you are just plain dumb. Wealthy people use assets to pay for those "toys" which keep them from working and saving just to spend it on a liability...which is what most of us have been taught.

Ever hear the words "Im saving up to buy a car" well here is a scenario between 2 person who has a rich mindset and the other a poor mindset.

Scenario 1 - Person with a poor mindset would work a 9-5 save about 20K and purchase a car. After which he will need to pay insurance, gas which he will continue to work 9-5 to pay those bills.

Scenario 2- Person with a rich mindset would work 9-5 (if they have no other way) use that 20K to purchase on lets say a storage unit. Then rent out that storage unit for about $300-400 a month.

Use that money to pay for monthly car payments.....then after a number of years that person will have paid off the car...still have the rental unit and continue to get passive income every month. In this method...the person gets it all! And isnt't that what we want?


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